Location: Topeka, KS | Metro: Topeka, KS MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
The analysis of ZIP 66420 reveals several key points regarding its viability for Section 8 real-estate investment.
The first question to address is whether the rent math works. The Fair Market Rent (FMR) for ZIP 66420 in fiscal year 2024 is set at $980. However, the market rent data is currently unavailable, making it impossible to directly compare these figures. Without a benchmark for market rent, it's challenging to assess if the FMR adequately compensates landlords relative to what they could potentially earn from market-rate tenants.
Regarding the affordability of acquisition, the median home value and other critical metrics such as days on market (DOM) and the percentage of homes that required a price cut are also not available. This lack of data means that we cannot provide a detailed assessment of how affordable it would be to purchase properties in this area specifically for Section 8 tenancy. Typically, lower median home values and shorter DOM periods indicate a more affordable market, but these specifics are needed to draw any conclusions.
The third point concerns tenant demand. Again, due to missing data on the population and the percentage of renters in ZIP 66420, it's difficult to quantify the potential demand for rental units. In general, higher renter shares and larger populations suggest greater demand, which can stabilize an investment. But without concrete numbers, we can't make a definitive statement about the demand for rentals in this ZIP code.
Verdict: The analysis of ZIP 66420 for Section 8 real-estate investment is hampered by a lack of crucial data points, including market rent, median home value, days on market, price-cut share, population, and renter share. These figures are necessary to determine if the rent math works, if property acquisition is affordable, and if there is sufficient tenant demand. Until this data becomes available, landlords and small-portfolio investors should proceed with caution when considering investments in this area.
Data Sources: FMR data from HUD (2027).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.